GMAC Commercial Finance LLC has sold its resort financing business to Centerbridge Capital Partners LP for an undisclosed price. The business includes a $1 billion portfolio of loans to timeshare resorts.
Michael A. Carpenter, chief executive of Ally Financial Inc., the parent of GMAC, said the transaction was part of the company's plan to reduce its exposure to non-strategic assets.
To manage the newly acquired business, Centerbridge has formed Lantern Asset Management LLC; Lantern's management team is expected to include certain GMAC employees, as well as William T. Phillips, the former executive vice president and chief operating officer of Marriott Vacation Club International.
The resort finance business will be held in another new entity, Resort Finance America LLC.
Lance N. West, Centerbridge senior managing director, said, "We believe this investment represents a compelling opportunity to back a strong and highly experienced management team to acquire and manage an attractive business, and potentially acquire other timeshare and related assets in the future. As many of the traditional lenders to the timeshare industry have exited the business, we believe that this affords certain unique investment opportunities in the industry."
